A two-sector model of economic growth with social capital accumulation
Angelo Antoci,
Luca Guerrini (),
Mauro Sodini and
Luca Zarri
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2014, vol. 53, issue C, 56-65
Abstract:
In this paper we analyze a two-sector growth model in which the utility function is not additively separable in consumption and “quality leisure time”. Differently from the main body of theoretical literature on quality leisure, we assume that the “productivity” of leisure is not determined by the stock of human capital but instead by the quality of social environment, which in turn depends on the joint action of the economy-wide average leisure and of the stock of social capital. In this context we show that the time evolution of social capital may exhibit an inverted-U shaped path, according to which the stock of social capital, initially increasing, becomes definitively decreasing. This result is consistent with several empirical studies about the time evolution of social capital in industrialized economies (see e.g. Robert Putnam, 1995, 2000). Furthermore, we show that the inverted-U shaped evolution of the stock of social capital can be observed only if the balanced growth path is locally indeterminate.
Keywords: Economic growth; Social capital; Quality leisure; Local indeterminacy of equilibrium selection (search for similar items in EconPapers)
JEL-codes: J22 O33 O41 Z13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804314000883
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:53:y:2014:i:c:p:56-65
DOI: 10.1016/j.socec.2014.08.002
Access Statistics for this article
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza
More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().